Paypal Changes for 2022

Does anyone have a link to these new limits? PP says it's still the 20,000/200 in a calendar year and they reference IRS IRC Section 6050W. Heres the link: https://www.irs.gov/pub/irs-utl/irdm_section_6050w_faqs_7_23_11.pdf

IRC Section 6050W says the same thing - 20,000/200 in a calendar year

Paypal notified me that they will send me form 1099 this year for selling used gear. I used Paypal for the transaction.

Paypal has been withholding fund that I get paid for selling my used gear on Audiogon. Paypal withholds my funds for weeks and requests tons of information concerning the Audiogon sale for releasing the funds to me. Is there a better online payment service company out there? Is Zelle a good alternative? Please help, I need to stop using Paypal.

And 15,000if you want medical insurance for a family .

Congress will ALWAYS see US has private insurance .

We are so lucky the other 29 lands in our group only have State pays . Cost to you   around  1500 in tax ,

I just got my 1099 from paypal, sold 6200 worth of audio gear in 2021

FINE BY ME, IRS says I am a business, GREAT, now I get to deduct the loss

miles driven to the hi end audio store where I look for gear, a home office etc

I will make sure my losses and expenses are WAY MORE than the income I got

gosh darn I am such a bad business man, shucks !

Last year I received around 10K in sales of stereo equipment via 11 transactions using Paypal. On 10 of the 11, I took losses....with a small profit of $100 on 1 sale. If this was the case in 2022, I would receive  a 1099 despite the fact I had losses totaling around $900. In some cases, the purchases go back further than PP or AG, AM, E-bay keep records of....so no receipts. I do not run a side business, this is a hobby.  How would I be able to report the offsetting losses in my tax return?

I am making copies of my PP transactions while they are alive on the site and saving them in Excel format for easy searching. I am also keeping a notebook to describe the transactions and putting those transactions in with my tax files as they occur. Also, I put all my emails from Paypal or purchases for audio gear in a folder called 2 Channel as a triangulation set of data, especially purchases. Say, when you buy a piece from a dealer and you get a receipt, then you compare that to your Paypal sale as a loss down the road. So, in essence, this is making us have business records.

Hopefully somebody here can answer the question of how to report losses to offset  "income"  when one receives a 1099k in 2023. Unfortunately,  IRS will not answer questions regarding tax laws over the phone! I don't have an accountant, as I do my own taxes.

@lula 

You do not get to offset losses against gains. Thats the current tax law.

The IRS has released an example of someone who has purchased a couch for $1200 and sold it for $800 on E-bay. This would NOT be taxable "income" despite the fact that Paypal would send out a 1099k. No different for those of us receiving less than we paid for stereo equipment. My question remains what IRS form/schedule will be needed to show such offsets?

@lula 

In your example, lets say you sell two couches. You paid $1,200 for each. You sell couch one for $1,500 and six months later sell couch two for $800. You owe tax on the $300 gain. You get no benefit or offset on the $400 loss from couch two. In order for you to offset those, it must be a business.

@ghasley 

I agree. However the 1099K would show income of $2300. My question is how do you report this on your tax return? My research seems to indicate "Other Income" on the 1040 and then Schedule 1, Line 2z and then Line 24z for the 2k offset. Then the 2k adjustment on Line 10 would be subtracted from the 2.3k on the 1040 with tax owed on the $300. Only a profit can be taxed. A separate statement/worksheet is suggested to show each transaction.

As always, thanks, Trump voters.

I got my 1099 for 2021. The solution mulifold:

1. Going forward only use PayPal friends and family. Buyer loses buyer protection. But seriously, how much protection is PayPal going to give the buyer? I suspect not much. The real protection I have always relied on is via my credit card issuers and in my opinion American Express is the best. If the buyer wants the protection then they can pay friends and family with their credit card. PayPal let’s buyers do that. The Buyer will be charged the usual PayPal fee that they would have had to include in a goods/services transaction with me anyway. But Buyers real protection is working with sellers who have 95-100% positive feedback over many transactions over years. 
2. The IRS has put us in business now. Submit a scheduled C list the cost basis of everything you sold from your purchase records. Now you can deduct packing and shipping expenses, probably home office or listening room expenses related to evaluations of all the equipment you bought and sold, maybe your Roon subscription and who knows what else. The IRS has made a mistake here. They have messed with the wrong hobbyists. A bunch of middle aged guys with disposable income and probably a bunch of CPAs. As DrCWO from RooExtend says: “Have fun with it!”